British Virgin Islands: Financial Sector Assessment Program Update Documentation: Technical Note on Mutual Fund Regulation

IMF Staff Country Reports, October 25, 2010

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Canonical URL: British Virgin Islands: Financial Sector Assessment Program Update Documentation: Technical Note on Mutual Fund Regulation

Prior assessment concluded the BVI regulatory system governing securities markets "functioned well overall, but required improvement in certain areas."
Improvements are implemented through regulatory code, Securities and Investment Business Act (SIBA), related regulations, and the public funds code.
The Financial Services Commission (FSC) determines standards and eligibility of those who wish to manage or administer a mutual fund under authority granted by statute.
A mutual fund can be organized as a corporation, unit trust, or partnership.

Key instruments:
- Securities and Investment Business Act (SIBA)
- Related regulations
- Public funds code
- Regulatory code
Regulator:
- Financial Services Commission (FSC) — statutory authority to set standards and eligibility for fund managers and administrators.
Fund organization forms:
- Corporation
- Unit trust
- Partnership

FSC responsibilities (as described):
- Determine standards and eligibility for those managing or administering mutual funds.
- Implement regulatory requirements via the statutory framework noted above.
Implementation status:
- Areas identified for improvement in the earlier assessment have been implemented through the instruments listed.